Europe: Spain’s Outlook Raised to Stable at S&P; Netherlands Cut
Standard and Poor’s raised Spain’s debt outlook from negative to stable, citing resumed economic growth. In contrast, the agency lowered the Netherlands from AAA to AA+ due to weaker growth prospects than previously expected.
Ukraine: Ukraine does not sign the DCFTA
After attempts to find a way in which Ukrainian President Viktor Yanukovych would sign the Deep and Comprehensive Free Trade Agreement with the EU in the Eastern Partnership in Vilnius, no agreement has been reached in trade matters. A less significant agreement for an Aviation Common Area with Ukraine and the EU was signed, however, as the Kyiv Post reported.
United Kingdom: UK house prices see strong rise, says Nationwide
BBC reports that in November the house prices rose 6.5% over the same month last year according to the Nationwide building society, reaching the highest level in more than five years. The rise was the result of a better outlook in the labor market. However, the decision to stop the Funding for Lending (FLS) program could put a break on the housing market.
Japan: Abenomics works for prices, wages are lagging
Prices excluding energy and fresh food rose 0.3 percent in October over the same month last year. According to Bloomberg, households face the prospect of sustained inflation for the first time in almost a generation, a dynamic that could hurt spending unless wages begin to rise. The focus is turning to salary negotiations early next year that may determine the success of Abe’s bid to reflate the world’s third-largest economy.
China: The Government’s Budget Revolution
Caixin editorial unveils that the Communist Party has announced plans to build a standardized, open and transparent budgetary system. It will represent a first step toward modern fiscal management.